Fiber-optics and Internet network provider Level 3 Communications announced today that it will pay an unnamed institutional investor $78.2 million in cash and interest on debt, and $200 million in notes in exchange for $281.9 million in debt and cash.
The notes can be converted at any time by the holders into shares of Level 3’s common stock at a conversion price of $1.80. Broomfield, Colo.-based Level 3 expects to close the exchange transaction prior to the end of the second quarter, subject to customary closing conditions.
Additionally, Level 3 announced that during the second quarter, it completed open market debt repurchases for an aggregate of approximately $223 million in cash, excluding accrued and unpaid interest. The company repurchased approximately $117 million aggregate principal of debt due this year, approximately $50 million aggregate principal of debt due 2010, approximately $61 million aggregate principal of debt due 2011 and approximately $20 million aggregate principal of debt due 2012.
After the close of today’s announced transaction and excluding capital leases, Level 3 said it has approximately $60 million of debt due this year, approximately $181 million of debt due in 2010, approximately $505 million of debt due in 2011 and approximately $306 million of debt due in 2012.
At March 31, Level 3 had unrestricted cash and cash equivalents of $672 million, or $634 million after giving effect to the approximately $274 million of net proceeds received from the senior secured Tranche B Term Loan completed in April and May, along with today’s announced transactions.
